The following table provides nominal exchange rates for the Canadian dollar:
Based on these data,the nominal exchange rate equals _________ pounds per euro or __________ euros per pound.

Question

The following table provides nominal exchange rates for the Canadian dollar: 
Based on these data,the nominal exchange rate equals _________ pounds per euro or __________ euros per pound.

Quizplus · Accepted Answer

To find the exchange rate between pounds and euros, we need to use the exchange rate between each currency and the Canadian dollar. We can then calculate the cross-rate between pounds and euros.

From the table, we see that 1 Canadian dollar is equal to 0.844 pounds and 1 Canadian dollar is equal to 1.184 euros.

To find the exchange rate between pounds and euros, we divide the exchange rate of pounds by the exchange rate of euros:

Exchange rate (pounds/euro) = Exchange rate (pounds/Canadian dollar) ÷ Exchange rate (euros/Canadian dollar)
Exchange rate (pounds/euro) = 0.844 ÷ 1.184
Exchange rate (pounds/euro) = 0.711

Therefore, the nominal exchange rate equals 0.844 pounds per euro or 1.411 euros per pound (which is the reciprocal of 0.711).

The closest choice is D, with an exchange rate of 0.844 pounds per euro, which matches our calculation.

The Following Table Provides Nominal Exchange Rates for the Canadian